Health Insurance Hike Will Hurt Your Hip Pocket

Premiums surge 3 times inflation rate

Our PM and Health Ministers both reckon bumping up health insurance premiums is not such a bad thing.

Don't know how millions of Aussies feel about that though!

Malcolm Turnbull's urging Australians not to dump their private health cover, after giving the green light for a big price hike that will cost families up to $200 extra a year.

Canberra claims it the 4.84 per cent increase is the lowest in 10 years but that's still around three times the rate of inflation.

The changes apply from April 1st, but Tom Godfrey from consumer group Choice views health premiums a little differently, saying not all Australians necessarily need cover or the top level cover.

"Young people under 31, earning under $90,000, their private hospital insurance doesn't make a great deal of sense but for families, for older Australians, top level cover policies with an excess or co-payment, can make a it more sense," Godfrey said.

Godfrey suggests shopping around if you do have a policy though, and are looking to save.

"You can drop your extras cover and save up to about 45 per cent off your annual premium and there's no tax penalty for doing that," he said.